A foreign business entity or a foreign trader is allowed to
set-up a branch in Vietnam to conduct business activities.
Having the right to
conduct business activities and make profit are how a branch
differs from a representative office in Vietnam. A
branch depends on the foreign business entity that set-up the branch while a
foreign owned company set-up in Vietnam exists by itself. The Vietnam
Department of Industry and Trade will be approving the establishment of a
branch in Vietnam while Vietnam Ministry of Planning and Investment will be the
State agency that coordinate the setting up a company in Vietnam.
In particular, the
branch of a foreign business entity in Vietnam (referred to as the “Branch”)
means a subsidiary unit of the foreign business entity, established in
accordance with the law of Vietnam in order to enter into contracts in Vietnam
and conduct activities being the purchase and sale of goods and other
commercial activities consistent with its licence for establishment in
accordance with the law of Vietnam and any international treaty to which the
Socialist Republic of Vietnam is a member.
The Branch will need to
apply and obtain the establishment license; and have a seal bearing the name of
the Branch.
1. Rights of the Branch
- To
rent offices and to lease or purchase the equipment and facilities
necessary for the operation of the branch.
- To
recruit Vietnamese and foreign employees to work for the branch in
accordance with the law of Vietnam.
- To
enter into contracts in Vietnam in accordance with the activities stated
in the license for establishment of such branch and in accordance with the
Vietnam Law.
- To
open Vietnamese dong and foreign currency accounts at banks which are
licensed to operate in Vietnam.
- To
remit profits abroad in accordance with the law of Vietnam.
- To
have a seal bearing the name of the branch in accordance with the law of
Vietnam.
- To
conduct activities being the purchase and sale of goods and other
commercial activities consistent with its license for establishment in
accordance with the law of Vietnam and any international treaty to which
the Socialist Republic of Vietnam is a member.
2. Requested conditions
for establishment the Branch in Vietnam
A foreign company which
has effectiveness business activities will be allowed to open the Branch in
Vietnam if this company has real demand to open the market in Vietnam and meet
some conditions as below:
- Being
a trader recognized by the law of the country where it has been lawfully
established or made its business registration;
- Having
been operating for at least five years after its lawful establishment or
business registration.
3. Issuance the
Certificate of Branch:
The issuance of the
Certificate of Branch will be implemented by the Department of Industry and
Trade Department after the foreign company meets all of conditions as
Vietnam legal requirements.
The issuing period will
be within 20 working-days after the date of submitting the full valid documents
as requested.
At ANT Lawyers, a law
firm in Vietnam with offices in law
office Hanoiand Ho
Chi Minh City, we are available to assist clients in licensing
and post-licensing matters to help clients with all questions and services in
setting up and maintaining the company or other form of business entities in
Vietnam. We could be reached at email: ant@antlawyers.vnor
office tel: +848 35202779.
Source: ANTLawyers.vn
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